Fuel savings boost sales of Kia range

Kia's 4WD diesel, the 2-litre Sportage.

Kia puts its growth in the New Zealand market this year down to increased interest in its diesel-powered models and smaller, fuel-efficient petrol cars.

And the Korean carmaker predicts that rising fuel prices will lead to more diesel vehicles and a greater emphasis on smaller cars.

Kia Motors NZ general manager John Keenan wants to expand the Kia range to include more fuel-saving options for new car buyers.

"I believe New Zealand is starting to follow Europe, where smaller, economical cars and diesel models have been more popular for some time because of Europe's traditionally higher fuel prices," says Keenan.

The micro car segment here now accounts for 11 per cent of new car sales (up from 9.9 per cent in the first quarter of last year) and small cars have risen to a 28.4 per cent market share (up from 24.6 per cent).

"With our fuel costs rising fast, New Zealanders are now starting to think along the same lines as Europeans and are becoming more receptive to smaller, economical passenger cars and vehicles powered by thrifty diesel engines," says Keenan. "It makes a lot of sense when you can save 40 per cent on your running costs compared to a larger petrol vehicle."

Keenan says Kia is studying a number of diesel variants that could be introduced to New Zealand and expects to make a decision soon.

The company's two 4WD diesels, the 2-litre Sportage and 2.5-litre Sorento, have been selling well. They account for 7.2 per cent of all SUV sales in New Zealand to date.

Keenan says Kia's fortunes have also been boosted by the introduction of a new line-up of small, petrol cars. The most recent is the 1.1-litre Kia Picanto, billed as one of the most economical cars in the country, with an average consumption figure of just 5.2L/100km (54mpg).

Although it didn't enter the market until the beginning of March, Picanto has already grabbed 3 per cent of the micro car market.

To the end of March, Kia had reached 651 vehicle registrations compared with 148 registrations at the same stage in 2005.